bankruptcy, repossession of motorcycle and four wheeler state of IL

First, I'm admitted in NY, not in IL, so my answer must necessarily be general, not specific.

When your daughter files her bankruptcy petition, the creditors, including Yamaha, will be forbidden by automatic court order from contacting her again about her debts (this is called the "automatic stay" and it is a blessed relief to debtors). However, Yamaha, which is what is called a "purchase money lender" -- aka a creditor on steroids -- may petition the court to allow them to continue to work with her to find Former Boyfriend and the 4-wheeler, and the court will probably grant that petition; they may include other requests in the petition too -- like permission to repo the 4-wheeler if it's found, and the court may very well grant that. If/When they find Former Boyfriend, it sounds like Former Boyfriend will have a problem for which he will need a criminal lawyer.

The bankruptcy will proceed as all bankruptcies do, depending on the chapter of the bankruptcy code she files under, and it will either get discharged or dismissed in due course. For the purposes of this answer, I'll assume that it will get discharged (dismissal negates my answer and puts everything back to Square One). If the bankruptcy is discharged, your daughter will be permanently out from under the Yamaha debt (and all the other debts that she has accumulated that are properly listed on her bankruptcy petition). I'm sure Yamaha would welcome her continued help in their efforts to find Former Boyfriend, but she is under no obligation to do that, either.

If Former Boyfriend has sold, wrecked, or otherwise disposed of the 4-wheeler, that will be Yamaha's problem. Your daughter will have no further responsibility for that loan once the bankruptcy is discharged. If you're interested, Yamaha does have recourse against such an occurrence, but that recourse will not involve your daughter.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Your question deals with several things

(1) What happens when a bankruptcy is filed
(2) What happens when a creditor cannot find its collateral
(3) What happens when collateral is removed and a debtor (your daughter) is on the hook

First, when a bankruptcy case is filed an Automatic Stay descends on all creditors so that no further action can be taken against the debtor. Under these facts, your daughter (and her boyfriend?) appear to be joint debtors on this collateral so, all action against her such as phone calls, letters, demands, and the like will stop as soon as she files.

Second, if the collateral cannot be found by the creditor (as in this case in which you say the boyfriend is concealing the 4-wheeler) the responsibility falls on your daughter to account for the whereabouts of the collateral. Once that burden has been met the creditor (Yamaha) bears the burden of proving otherwise. In sum, your daughter appears to be fine at the moment.

Finally, even if Yamaha is not convinced of the whereabouts of the collateral, the Automatic Stay will prevent any sudden action against your daughter until further proof can be provided (by either party) as to the whereabouts of the 4-wheeler.

In sum, bankruptcy should resolve many of the issues you've raised here. If you need additional information feel free to see our website or give us a call to set up a one-on-one consultation. Thank you for your time.